Information System Terminology (HL IB Business Management)

Data Analytics

• Data analytics involves transforming raw data into useful information to uncover patterns, correlations, trends and insights 
  
  
• Data analytics has become increasingly important to businesses in today's data-driven world
  • It helps organisations to gain a competitive advantage and make informed decisions
    
  • Data-driven decision making tends to be less risky than pursuing hunches
    
    

Diagram Illustrating Key Components of Data Analytics

Data Analytics involves the collection, cleaning & preparation, analysis, visualisation and interpretation of data before communicating to stakeholders

Types of Data Analytics

Databases

• A database provides a structure for stored data 
• Typically electronic databases allow for swift data input, storage, protection and retrieval of information
• Setting up and maintaining databases can be costly
  • Data must be kept secure
  • Database managers may be required to ensure databases are fit for purpose
    
    

Diagram: Database Use in a University

Universities use database systems for many reasons, including student and employee information systems, library management and attendance tracking

Cybersecurity & Cybercrime

• Cybersecurity includes systems used to protect computer networks from theft or unauthorised access of data
  
  
• Cybercrime is illegal activity related to the use of computer or network devices
  • It is often related to financial or commercial gain 
  • It is a significant risk to business - according the UK government cybercrime cost British businesses an average of £1,100, with 69% of large businesses reporting a significant cyber-attack in 2022
    
    

Common Forms of Cybercrime

• A business can protect itself against cybercrime in a number of ways

Ways to Protect Business Systems from Cybercrime

• Critical infrastructures are IT-based systems and facilities that are central to the effective operation of a business
• Examples of critical infrastructures include
  • Artificial neural networks
  • Data centres
  • Cloud computing
    
    
• Artificial neural networks (ANNs) are computer systems inspired by the way the human brain works
  
  • They automate business tasks in some well-known businesses 
    • Chatbots are used by businesses such as Next Retail to respond to customer service queries
    • Insurance companies such as Admiral use ANN's to detect fraud in insurance claims where unusual patterns  need to be identified
    • Manufacturers including Toyota and Hyundai use ANN's to monitor machinery and predict when equipment is likely to fail so timely maintenance tasks can be carried out
      
    • Large retailers such as Tesco use ANNs to monitor temperatures in stores' refrigerated units to ensure that perishable goods are stored safely
      
      
• Data centres are physical spaces that hold important applications and data on behalf of a business
  • Their components include mainframes, servers, routers, firewalls and storage systems
  • Services such as data backup, security, database management and storage, email and file sharing and virtual communications systems are provided by data centres
    
    
• Cloud computing is similar to a data centre though applications and data are stored online rather than in a physical location
  • Examples include Google Drive, Dropbox and Apple's iCloud
  • Remote servers and online networks are used to store and share data

Virtual Reality

• Virtual reality (VR) allows users to explore and interact with a realistic 3-dimensional (3D) environment created using software
  • VR can be used in a number of ways by businesses

Business use of Virtual Reality 

• In addition, virtual reality can help businesses to deliver realistic training and has been used by some large businesses to develop immersive advertising

The Internet of Things

• The Internet of Things (IoT) refers to the connection of everyday objects to the internet which allows them to send and receive data for various purposes
  • In an IoT system tasks are performed with little or no human intervention
  • Devices can range from simple household items such as refrigerators and smart speakers to complex industrial machinery
    
    
• Businesses such as Amazon have enjoyed commercial success with devices such as the Echo and its Alexa software
  
  
• Devices can also be used within businesses to improve the efficiency of processes 
  • Volvo car dealerships use data from embedded sensors in vehicles to offer timely maintenance to owners and ensure appropriate parts are in stock
  • Smart climate control systems are used in Sainsbury's supermarket distribution hubs to ensure perishable goods are not wasted

Artificial Intelligence

• Artificial intelligence (AI) allows machines to complete tasks that normally require human intelligence or reactions
  
• Although in its infancy, some businesses are enjoying considerable commercial success in the field
   

Examples of Top AI Businesses in 2023

• AI can carry out numerous business functions and improve their efficiency
  • In Human Resources AI filters job applications and compiles shortlists for interview
  • Logistics have been improved by the use of AI-powered tools such as Google Maps which gather and process real time travel conditions
  • AI manages some customer service functions, powering chatbots and improving the efficiency of search engines
  • Automatic payment systems such as Paypal incorporate AI to improve financial management